DENVER, Sept 14 Central banks are expected to
buy 6 million to 10 million ounces of gold annually due to
currency uncertainties after being net sellers in past decades,
Jeffrey Christian, managing director of CPM Group, told the
Denver Gold Forum on Monday.
In a keynote speech kicking off North America's biggest
gold conference, which runs through Wednesday, Christian gave
what he said was a conservative forecast for gold to average
$914 an ounce over the next 10 years. Spot gold XAU= was
trading at around $1,000 on Monday.
"What we are seeing is that central banks are making the
transition from large net sellers to large net buyers,"
"You will see a net buying of 6 (million) to 10 million
ounces per year by central banks, and that is an extremely
conservative projection," he said.
Christian said that European central banks appeared to be
done with their gold selling, and that central banks in
emerging countries which have been building up foreign reserves
were now diversifying into gold due to volatility in the dollar
and other major currencies.
Recently, China and other emerging economies have signaled
growing interest in gold rather than stockpiling their currency
reserves in U.S. dollar-denominated assets.
(Reporting by Frank Tang; editing by Jim Marshall)